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Joules posts strong revenue growth, raises profit outlook

By Prachi Singh

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Management

Providing trading update for the 52-week period to May 28, 2017, Joules Group said that the company’s revenues increased by 19.6 percent or 18.6 percent on a constant currency basis to 157 million pounds (202 million dollars). This is the company's first full financial period since admission to AIM on May 26, 2016. Joules said this strong growth is a reflection of the brand's expansion in the UK and international markets.

"The brand's growth continued in the second half of the financial year, building on the strong performance in H1. As a result of the brand's momentum across channels and product categories, the board anticipates reporting profits for the full year comfortably ahead of its previous expectations. Underpinned by these strengths, the board has confidence that Joules' momentum will continue into FY18, despite the uncertain macro-economic outlook,” said Colin Porter, the company’s Chief Executive Officer in a media release.

Retail revenues grew 19.4 percent

Retail revenue increased by approximately 19.4 percent on current and constant currency basis on the prior year driven by strong growth in the e-commerce channel as well as continued growth across the group's UK and ROI store estate where the group opened 11 net new stores in the period under review.

The wholesale segment sales were up by approximately 20.3 percent or 17.6 percent on a constant currency, on the prior year, which the company said was driven by strong growth in the spring/summer order-book from both our UK and international wholesale customers.

The board anticipates reporting a strengthening in the group gross margin against the prior year as a result of a higher proportion of full price sales, reflecting the strength of the Joules brand, as well as further distribution efficiencies and a favourable product mix within international wholesale - where Joules has successfully been increasing the relative proportion of clothing sales.

As a result of the group's revenue growth and improved gross margin, combined with continued cost discipline, the board anticipates reporting FY17 group profit before tax ahead of its previous expectations.

Picture:Joules website

Joules